Texas Bill: Direct Wine Sales for Micro-Wineries

**Pouring Local: Texas Wineries Seek Direct Path to Restaurant Menus as Key Bill Advances in Austin**

AUSTIN, TX – Texas lawmakers are on the cusp of uncorking a significant change for the state’s burgeoning wine industry, with legislation poised to make it easier for local wineries to get their products onto restaurant menus. The push centers on a proposed “micro-winery permit,” designed to bypass the traditional distribution hurdles that currently challenge smaller producers.

The initiative, spearheaded by Senate Bill 1640 (SB 1640) and its House companion, House Bill 4006 (HB 4006), aims to create a direct-to-restaurant sales channel for wineries producing less than 25,000 gallons annually. SB 1640, authored by State Sen. Charles Perry (R-Lubbock), has already successfully passed the Senate. Its counterpart, HB 4006, sponsored by State Rep. Ellen Troxclair (R-Lakeway), is currently awaiting action in the House Licensing & Administrative Procedures Committee as the 88th Legislative Session rapidly approaches its May 29 adjournment.

At the heart of the issue is Texas’s existing “three-tier system,” a regulatory framework mandating that wineries sell their products to a distributor, who then sells to retailers like restaurants. While this system functions for large-scale operations, it presents a significant barrier for the state’s numerous small and craft wineries.

Gene Estes, owner of Bernhardt Winery in Plantersville, Montgomery County, vividly illustrates the challenges. “Large distributors aren’t interested in handling our smaller batches,” Estes explained, describing the struggle to find distribution for his award-winning wines. “It forces small operations like ours into a costly and time-consuming process. I’m frequently driving to Austin at my own expense just to advocate for a change that seems so common-sense.”

The proposed micro-winery permit, as outlined in SB 1640 and HB 4006, would empower these smaller wineries to sell directly to restaurants. This isn’t about dismantling the entire distribution system, proponents emphasize, but rather creating a vital alternative path to market for businesses overlooked by traditional distributors.

Supporters, including the Texas Wine and Grape Growers Association (TWGGA), argue that the current system stifles growth and limits consumer choice. “Texas wine has grown exponentially in quality and recognition over the last decade,” noted a TWGGA spokesperson, “but many of our most innovative small producers can’t get their product in front of the diners who want to experience it. This legislation is crucial for unlocking that potential.”

The benefits of the proposed change are far-reaching. For micro-wineries, it promises significant savings in time and money, allowing them to retain more profits and potentially offer more competitive pricing. For Texas restaurants, it means a broader and more diverse selection of local wines, catering to growing consumer demand for locally sourced ingredients and unique culinary experiences. Ultimately, the legislation aims to boost the state’s agricultural economy, supporting small businesses and enhancing Texas’s reputation as a wine destination.

State Rep. Troxclair highlighted the economic impact. “This bill is about cutting red tape and supporting Texas small businesses and our agricultural economy,” she stated. “We have incredible wineries producing world-class wines, and they deserve a fair chance to get those products to market and on the tables of Texas restaurants.”

With the legislative clock ticking down to May 29, there’s a strong push from winery owners, restaurant operators, and industry advocates to ensure HB 4006 clears the House committee and receives a full vote before time runs out. Passage would signify a new era for Texas wine, bringing more local flavors directly from the vineyard to the plate.